On January 1, 2012, Desmet Company purchased office equipment that cost $15,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,000. The equipment had a five year useful life and a $1,200 expected salvage value. Assume that Desmet Company sold the office equipment on December 31, 2014 for $6,000, the amount of net income or (net loss) appearing on the December 31, 2014 income statement would be ($1,120). ($2,040). $3,880. $2,960.